雅居乐集团(03383) - 2020 - 中期财报

Company Overview Basic Information This chapter provides Agile Group Holdings Limited's basic company information, covering board members, key contacts, and registered office details - The Board of Directors comprises 12 members, including 4 executive directors, 4 non-executive directors, and 4 independent non-executive directors[19] - The company's principal bankers include Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, China Everbright Bank, Ping An Bank, China Merchants Bank, Shanghai Pudong Development Bank, The Hongkong and Shanghai Banking Corporation, The Bank of East Asia, Standard Chartered Bank (Hong Kong), and Hang Seng Bank[19] - Investors can contact the Capital Markets Department via ir@agile.com.cn or (852) 2847 3383[21] Listing Information This chapter details the equity, debt, and capital securities of Agile Group and its subsidiaries listed on the Hong Kong Stock Exchange, Singapore Exchange, and Shanghai Stock Exchange, including stock codes, maturity dates, and coupon rates - The company's ordinary shares (stock code: 3383) and A-Living H shares (stock code: 3319) are both listed on the Main Board of the Hong Kong Stock Exchange[22] Debt Securities of the Company Listed on Singapore Exchange Limited | Note Type | Maturity Year | Principal Amount (USD) | Coupon Rate | | :------- | :------- | :-------------- | :------- | | Senior Notes | 2020 | 400 million | 9.5% | | Senior Notes | 2021 | 600 million | 8.5% | | Senior Notes | 2022 | 200 million | 5.125% | | Senior Notes | 2022 | 500 million | 6.7% | | Senior Notes | 2025 | 500 million | 5.75% | Debt Securities of the Company Listed on Shanghai Stock Exchange | Note Type | Maturity Year | Principal Amount (RMB) | Initial Coupon Rate | | :------- | :------- | :---------------- | :----------- | | Corporate Bonds | 2020 | 970 million | 4.98% | | Corporate Bonds | 2020 | 3 billion | 6.98% | | Corporate Bonds | 2021 | 1.8 billion | 4.60% | | Corporate Bonds | 2023 | 1.2 billion | 5.70% | Financial Summary Income Statement Summary For the six months ended June 30, 2020, the company's revenue increased by 23.7% to RMB 33.527 billion, gross profit surged by 40.2% to RMB 11.520 billion, and gross profit margin improved by 4.1 percentage points to 34.4% Income Statement Summary for the Six Months Ended June 30, 2020 | Indicator | 2020 (RMB million) | 2019 (RMB million) | Change | | :--- | :-------------------- | :-------------------- | :--- | | Revenue | 33,527 | 27,114 | +23.7% | | Gross Profit | 11,520 | 8,220 | +40.2% | | Gross Profit Margin | 34.4% | 30.3% | +4.1 percentage points | | Profit for the Period | 6,339 | 5,894 | +7.6% | | Net Profit Margin | 18.9% | 21.7% | –2.8 percentage points | | Core Net Profit for the Period* | 6,518 | 4,807 | +35.6% | | Profit Attributable to Owners of the Company | 5,127 | 5,077 | +1.0% | | Core Net Profit Attributable to Owners of the Company* | 5,306 | 3,992 | +32.9% | | Basic Earnings Per Share (RMB) | 1.321 | 1.308 | +1.0% | | Interim Dividend Per Ordinary Share (HK cents) | 50.0 | 60.0 | –16.7% | Balance Sheet Summary As of June 30, 2020, the company's total assets increased by 10.5% to RMB 301.81 billion, and cash and cash equivalents increased by 14.3% to RMB 38.362 billion, with the net gearing ratio significantly decreasing by 9.5 percentage points to 73.3% Balance Sheet Summary as of June 30, 2020 | Indicator | June 30, 2020 (RMB million) | December 31, 2019 (RMB million) | Change | | :--- | :---------------------------- | :---------------------------- | :--- | | Total Assets | 301,810 | 273,232 | +10.5% | | Cash and Cash Equivalents | 38,362 | 33,551 | +14.3% | | Restricted Cash | 8,046 | 9,004 | –10.6% | | Short-term Borrowings | 40,303 | 42,297 | –4.7% | | Long-term Borrowings | 58,636 | 54,373 | +7.8% | | Equity Attributable to Owners | 47,999 | 44,474 | +7.9% | | Return on Equity** | 15.8% | 16.9% | –1.1 percentage points | | Total Borrowings / Total Assets | 32.8% | 35.4% | –2.6 percentage points | | Net Gearing Ratio | 73.3% | 82.8% | –9.5 percentage points | Chairman's Report Performance and Dividends For the six months ended June 30, 2020, Agile Group's revenue increased by 23.7% to RMB 33.527 billion, gross profit grew by 40.2% to RMB 11.520 billion, and gross profit margin rose to 34.4%, with core net profit and core net profit attributable to owners of the company increasing by 35.6% and 32.9% respectively Key Financial Results for H1 2020 | Indicator | Amount (RMB billion) | Year-on-Year Growth | | :--- | :---------------- | :------- | | Revenue | 33.527 | +23.7% | | Gross Profit | 11.520 | +40.2% | | Gross Profit Margin | 34.4% | +4.1 percentage points | | Core Net Profit for the Period | 6.518 | +35.6% | | Core Net Profit Attributable to Owners of the Company | 5.306 | +32.9% | | Confirmed Sales Revenue from Property Development | 29.310 | +18.7% | - Diversified business revenue accounted for 12.6%, an increase of 3.6 percentage points from the same period last year, demonstrating the effectiveness of the "property as core, diversified businesses in parallel" strategy[32] - An interim dividend of HK 50.0 cents per share was declared for the six months ended June 30, 2020, a decrease from HK 60.0 cents per share in the same period last year[32] Market Review In the first half of 2020, the global economy was impacted by the COVID-19 pandemic, with central banks launching massive stimulus policies, while China's economy recovered better than expected in Q2 with 3.2% GDP growth - The COVID-19 pandemic caused unprecedented shocks to the global economy, with central banks worldwide launching massive stimulus policies[33] - China's epidemic gradually came under control in Q2 2020, with various industries resuming work and production, leading to a 3.2% year-on-year GDP growth in Q2, reversing the contraction in Q1[33] - China's central policy adhered to the "housing is for living, not for speculation" positioning, implemented goals of "stabilizing land prices, housing prices, and expectations," and conducted three reserve requirement ratio cuts and two loan prime rate reductions, releasing approximately RMB 1.75 trillion in long-term funds[33] Business Development This chapter outlines Agile Group's latest progress in presales, land bank, and diversified businesses, all achieving significant growth and strategic development H1 2020 Diversified Business Revenue Growth | Business Segment | Year-on-Year Revenue Growth | | :------- | :----------- | | Property Management | +111.1% | | Environmental Protection | +68.5% | Presales Performance In the first half of 2020, Agile Group's cumulative presales amounted to RMB 55.10 billion, achieving 46% of its annual target, with an average presales price of RMB 13,608 per square meter H1 2020 Presales Performance | Indicator | Data | | :--- | :--- | | Cumulative Presales Amount | RMB 55.10 billion | | Annual Presales Target Completion Rate | 46% | | Corresponding GFA | 4.049 million square meters | | Average Presales Price | RMB 13,608 per square meter | - The company actively expanded diversified online and offline sales strategies, achieving good presales results in South China, East China, Hainan and Yunnan, North China, and other regions[34] - Expected salable resources for the full year 2020 exceed RMB 220 billion, with over 200 salable projects across multiple cities in China and overseas[34] Land Bank In the first half of the year, Agile Group added 20 high-quality new projects with a total GFA of 3.75 million square meters and a total land cost of RMB 13.9 billion, bringing the total land bank to 53.03 million square meters as of June 30, 2020 H1 2020 New Land Bank Additions | Indicator | Data | | :--- | :--- | | Number of New Projects | 20 | | Estimated Total GFA of New Land Parcels | 3.75 million square meters | | Total Land Cost of New Land Parcels | RMB 13.9 billion | | Corresponding Average Land Cost Per Square Meter | RMB 3,718 per square meter | Land Bank Distribution as of June 30, 2020 | Region | Land Bank (million square meters) | Percentage of Total Land Bank | | :--- | :------------------ | :----------------- | | Guangdong-Hong Kong-Macao Greater Bay Area | 13.11 | 24.7% | | Yangtze River Delta | 7.08 | 13.3% | | Total | 53.03 | 100% | Diversified Businesses Agile Group's diversified business segments continued to develop, with significant revenue growth in property management and environmental protection, and strategic advancements in other areas Property Management A-Living successfully acquired a 60% stake in C-MER Property, achieving leapfrog growth in scale, ranking among the top five in the industry, and securing TOP4 among China's Top 100 Property Service Enterprises - A-Living successfully acquired a 60% stake in C-MER Property, completing the largest M&A integration in the industry and perfecting its full-spectrum, nationwide layout[37] - A-Living's industry ranking significantly climbed, entering the top five and ranking TOP4 among "2020 China Property Service Top 100 Enterprises" by China Index Academy[37] A-Living GFA Under Management and Contracted GFA (as of June 30, 2020) | Indicator | Area (million square meters) | | :--- | :---------------- | | GFA Under Management | 353.4 | | Contracted GFA | 491.3 | - Contracted GFA from third parties cumulatively reached 364.8 million square meters, a significant increase of 100.8% compared to December 31, 2019, accounting for 74.3% of total contracted GFA[37] Agile City Services Spin-off Agile Group announced a proposed spin-off and separate listing of its subsidiary, Agile City Services Group Limited, a leading green ecological human settlement service provider in China - Proposed spin-off and separate listing of Agile Group Agile City Services Group Limited (Agile City Services) on the Main Board of the Hong Kong Stock Exchange[38] - Agile City Services primarily engages in providing green ecological landscape services and smart decoration home services, with operations in 119 cities across 27 provinces in China[38] Environmental Protection Business Agile Group's environmental protection business continued to expand its national footprint, holding 45 projects as of June 30, 2020, with revenue reaching RMB 799 million, a year-on-year increase of 68.5% - The environmental protection business continued to improve its national layout of hazardous waste treatment projects, actively developing safe landfill, water treatment, and waste-to-energy projects[39] Environmental Protection Business Project Count (as of June 30, 2020) | Project Type | Count | | :------- | :--- | | Hazardous Waste Treatment | 33 | | Waste-to-Energy | 5 | | Integrated Industrial Parks | 3 | | Water Treatment | 4 | | Total | 45 | Environmental Protection Business Revenue (H1 2020) | Indicator | Amount (RMB billion) | Year-on-Year Growth | | :--- | :---------------- | :------- | | Revenue | 0.799 | +68.5% | Property Management Services As of June 30, 2020, Agile Property Management Services had cumulatively signed 28代建 projects, with salable value exceeding RMB 100 billion, establishing a national layout and becoming a new profit growth point - Property management services cumulatively signed 28代建 projects, with salable value exceeding RMB 100 billion[40] - Property management services have initially completed their national layout, entering key city clusters such as the Guangdong-Hong Kong-Macao Greater Bay Area, Yangtze River Delta, Chengdu-Chongqing, Central and Western China, and Beijing-Tianjin-Hebei[40] Urban Renewal Agile Group officially established its Urban Renewal Group in the first half of 2020, focusing on renovation projects and securing an estimated GFA of over 7 million square meters with a value of nearly RMB 240 billion - The Group officially established the Urban Renewal Group, positioning itself as a "comprehensive urban renewal operator"[41] - As of June 30, 2020, the Urban Renewal Group had signed 13 cooperation agreements, with operations across 6 provinces and municipalities nationwide[41] Urban Renewal Group Locked-in Value (as of June 30, 2020) | Indicator | Data | | :--- | :--- | | Estimated GFA | Over 7 million square meters | | Locked-in Value | Nearly RMB 240 billion | Financial Strategy and Corporate Governance Agile Group adheres to a prudent financial strategy, optimizing its debt structure through accelerated sales collection, strengthened cash management, and diversified financing, while committed to good corporate governance and transparency - The company optimizes its debt structure by accelerating sales collection, strengthening cash and budget management, optimizing cost and expense management, and diversifying financing channels[42] - During the review period, the company issued USD 500 million of 5.75% senior notes due in 2025 and was granted a credit facility agreement with an initial amount of HKD 3.242 billion[42] Total Cash and Bank Balances (as of June 30, 2020) | Indicator | Amount (RMB billion) | | :--- | :---------------- | | Total Cash and Bank Balances | 46.407 | - The company adheres to the philosophy of "two-way communication, mutual benefit and win-win," maintaining effective communication with all parties, enhancing corporate transparency, and actively fulfilling its corporate social responsibilities[43] Outlook and Strategy Facing China's expected continued economic recovery, Agile Group will intensify sales efforts to achieve its annual target of RMB 120 billion, while continuously adapting strategies and enhancing internal management for long-term development - China's economic growth is expected to continue recovering in the second half of the year, and the company will intensify sales efforts, confident in achieving its annual sales target of RMB 120 billion[44] - The company will continue to closely monitor the development of the novel coronavirus, timely adjust its marketing plans and development strategies, and effectively promote the "property as core, diversified businesses in parallel" operating model[44] - Future strategies include enhancing internal management, optimizing operating models, improving talent training systems, elevating brand image, and continuously improving product and service quality to consolidate market position and achieve long-term development[44] Management Discussion and Analysis Overall Operating Performance For the six months ended June 30, 2020, Agile Group's revenue increased by 23.7% to RMB 33.527 billion, with profit for the period and core net profit growing by 7.6% and 35.6% respectively Key Financial Results for H1 2020 | Indicator | 2020 (RMB billion) | 2019 (RMB billion) | Year-on-Year Growth | | :--- | :---------------- | :---------------- | :------- | | Revenue | 33.527 | 27.114 | +23.7% | | Profit for the Period | 6.339 | 5.894 | +7.6% | | Core Net Profit for the Period | 6.518 | 4.807 | +35.6% | | Profit Attributable to Owners of the Company | 5.127 | 5.077 | +1.0% | | Core Net Profit Attributable to Owners of the Company | 5.306 | 3.992 | +32.9% | | Basic Earnings Per Share (RMB) | 1.321 | 1.308 | +1.0% | Land Bank As of June 30, 2020, Agile Group held a total land bank of 53.03 million square meters across 81 cities, with an average land cost of RMB 3,521 per square meter, and added 20 new projects in H1 2020 Land Bank Overview as of June 30, 2020 | Indicator | Data | | :--- | :--- | | Number of Cities Covered | 81 | | Estimated Total GFA | 53.03 million square meters | | Average Land Cost Per Square Meter | RMB 3,521 per square meter | H1 2020 New Land Projects | Indicator | Data | | :--- | :--- | | Number of New Projects | 20 | | Estimated Total GFA of New Additions | 3.75 million square meters | | Estimated Total GFA Attributable to the Group | 3.47 million square meters | | Related Land Cost Attributable to the Group | RMB 10.4 billion | - New markets opened include Qidong, Taixing, and Zhaoqing[46] Performance of Business Segments This chapter analyzes Agile Group's business segments' performance in H1 2020, highlighting revenue growth in property development, property management, and environmental protection, while hotel operations and property investment declined due to the pandemic Property Development and Sales In the first half of 2020, confirmed sales revenue from property development was RMB 29.310 billion, a year-on-year increase of 18.7%, with total confirmed sales GFA of 1.94 million square meters and an average price of RMB 15,144 per square meter H1 2020 Property Development and Sales Performance | Indicator | H1 2020 | H1 2019 | Year-on-Year Growth | | :--- | :----------- | :----------- | :------- | | Confirmed Sales Amount | RMB 29.310 billion | RMB 24.685 billion | +18.7% | | Total Confirmed Sales GFA | 1.94 million square meters | 1.94 million square meters | +0.6% | | Average Confirmed Sales Price | RMB 15,144 per square meter | RMB 12,836 per square meter | +18.0% | Property Management In the first half of 2020, property management revenue significantly increased by 111.1% to RMB 3.177 billion, primarily due to the acquisition of C-MER Property, with operating profit growing by 21.5% to RMB 719 million H1 2020 Property Management Performance | Indicator | H1 2020 | H1 2019 | Year-on-Year Growth | | :--- | :----------- | :----------- | :------- | | Revenue | RMB 3.177 billion | RMB 1.505 billion | +111.1% | | Operating Profit | RMB 719 million | RMB 592 million | +21.5% | | Total GFA Under Management | 353 million square meters | 211 million square meters | +67.3% | - Revenue growth was primarily due to the recent acquisition of a 60% stake in C-MER Property and the consolidation of its revenue[50] Hotel Operations In the first half of 2020, hotel operations revenue decreased by 56.6% to RMB 153 million, primarily due to the impact of the novel coronavirus pandemic H1 2020 Hotel Operations Revenue | Indicator | H1 2020 | H1 2019 | Year-on-Year Change | | :--- | :----------- | :----------- | :------- | | Revenue | RMB 153 million | RMB 353 million | -56.6% | - Revenue decline was primarily due to the impact of the novel coronavirus pandemic[51] Environmental Protection Business In the first half of 2020, environmental protection business revenue increased by 68.5% to RMB 799 million, primarily due to an increase in projects put into operation during the period H1 2020 Environmental Protection Business Revenue | Indicator | H1 2020 | H1 2019 | Year-on-Year Growth | | :--- | :----------- | :----------- | :------- | | Revenue | RMB 799 million | RMB 474 million | +68.5% | - Revenue growth was primarily due to an increase in projects put into operation during the period, leading to higher output and revenue[52] Property Investment In the first half of 2020, property investment revenue decreased by 9.5% to RMB 88 million, primarily due to the impact of the novel coronavirus pandemic, which led to a decrease in rental prices and occupancy rates H1 2020 Property Investment Revenue | Indicator | H1 2020 | H1 2019 | Year-on-Year Change | | :--- | :----------- | :----------- | :------- | | Revenue | RMB 88 million | RMB 98 million | -9.5% | - Revenue decline was primarily due to the impact of the novel coronavirus pandemic, which led to a decrease in both rental prices and occupancy rates[53] Cost and Expense Analysis This chapter analyzes Agile Group's cost and expense structure in H1 2020, noting increased cost of sales and administrative expenses, but improved gross profit margin due to high-margin projects Cost of Sales In the first half of 2020, cost of sales increased by 16.5% to RMB 22.007 billion, primarily due to higher land and construction costs, and a slight 0.6% increase in total confirmed sales GFA H1 2020 Cost of Sales | Indicator | H1 2020 | H1 2019 | Year-on-Year Growth | | :--- | :----------- | :----------- | :------- | | Cost of Sales | RMB 22.007 billion | RMB 18.894 billion | +16.5% | - The increase was primarily due to higher land and construction costs, and a 0.6% increase in total confirmed sales GFA[54] Gross Profit In the first half of 2020, gross profit increased by 40.2% to RMB 11.520 billion, and gross profit margin improved by 4.1 percentage points to 34.4%, primarily benefiting from a higher proportion of high-margin projects H1 2020 Gross Profit and Gross Profit Margin | Indicator | H1 2020 | H1 2019 | Year-on-Year Growth/Improvement | | :--- | :----------- | :----------- | :------------ | | Gross Profit | RMB 11.520 billion | RMB 8.220 billion | +40.2% | | Gross Profit Margin | 34.4% | 30.3% | +4.1 percentage points | - The increase in gross profit margin was primarily due to a higher proportion of projects with higher gross profit margins (especially those with lower unit land costs)[55] Net Other Income In the first half of 2020, net other income decreased by 40.0% to RMB 2.832 billion, primarily due to a significant reduction in gains from disposal of subsidiaries and fair value gains on financial assets H1 2020 Net Other Income Change | Item | H1 2020 (RMB billion) | H1 2019 (RMB billion) | Year-on-Year Change | | :--- | :------------------------ | :------------------------ | :------- | | Net Other Income | 2.832 | 4.722 | -40.0% | | Gains from Disposal of Subsidiaries | 1.812 | 2.989 | -39.4% | | Fair Value Gains on Financial Assets at FVTPL | 0.054 | 0.883 | -93.9% | | Gains from Disposal of Financial Assets at FVTPL | 0.025 | 0.247 | -89.9% | Other Income In the first half of 2020, other income increased by 34.7% to RMB 778 million, primarily driven by an increase in interest income and government grants H1 2020 Other Income | Indicator | H1 2020 | H1 2019 | Year-on-Year Growth | | :--- | :----------- | :----------- | :------- | | Other Income | RMB 778 million | RMB 577 million | +34.7% | - The increase was primarily due to an increase in interest income and government grants[57] Selling and Marketing Expenses In the first half of 2020, selling and marketing expenses were similar to the same period last year at RMB 952 million, with the percentage to revenue decreasing to 2.8% due to effective cost control and marketing strategy changes H1 2020 Selling and Marketing Expenses | Indicator | H1 2020 | H1 2019 | Year-on-Year Change | | :--- | :----------- | :----------- | :------- | | Selling and Marketing Expenses | RMB 952 million | RMB 959 million | Similar | | Percentage of Revenue | 2.8% | 3.5% | -0.7 percentage points | - The decrease in percentage was primarily due to the Group's effective control over selling and marketing expenses and changes in marketing strategies[57] Administrative Expenses In the first half of 2020, administrative expenses increased by 23.2% to RMB 1.714 billion, primarily due to a significant 317.8% increase in R&D expenses to RMB 260 million and an increase in headcount H1 2020 Administrative Expenses | Indicator | H1 2020 | H1 2019 | Year-on-Year Growth | | :--- | :----------- | :----------- | :------- | | Administrative Expenses | RMB 1.714 billion | RMB 1.390 billion | +23.2% | | R&D Expenses | RMB 260 million | RMB 62 million | +317.8% | - The increase was primarily due to an increase in R&D expenses and an increase in headcount to support the Group's business expansion[58] Other Expenses In the first half of 2020, other expenses decreased by 4.8% to RMB 128 million, primarily due to a 12.7% reduction in charitable donations H1 2020 Other Expenses | Indicator | H1 2020 | H1 2019 | Year-on-Year Change | | :--- | :----------- | :----------- | :------- | | Other Expenses | RMB 128 million | RMB 135 million | -4.8% | | Charitable Donations | RMB 48 million | RMB 55 million | -12.7% | Finance Costs and Profit Distribution In the first half of 2020, net finance costs significantly increased due to exchange losses, while share of post-tax profits from equity-accounted investments and profit attributable to owners of the company both grew Net Finance Costs In the first half of 2020, net finance costs increased by 45.0% to RMB 1.342 billion, primarily impacted by an exchange loss of RMB 750 million due to RMB depreciation against USD and HKD H1 2020 Net Finance Costs | Indicator | H1 2020 | H1 2019 | Year-on-Year Growth | | :--- | :----------- | :----------- | :------- | | Net Finance Costs | RMB 1.342 billion | RMB 926 million | +45.0% | | Exchange Loss | RMB 750 million | - | - | - The increase was primarily due to an exchange loss of RMB 750 million arising from foreign currency denominated debts due to the depreciation of RMB against USD and HKD during the period[60] Share of Profits from Investments Accounted for Using the Equity Method In the first half of 2020, the share of post-tax profits from investments accounted for using the equity method significantly increased by 226.8% to RMB 491 million, primarily due to increased shares from joint ventures and associates H1 2020 Share of Profits from Investments Accounted for Using the Equity Method | Indicator | H1 2020 | H1 2019 | Year-on-Year Growth | | :--- | :----------- | :----------- | :------- | | Share of Post-tax Profits | RMB 491 million | RMB 150 million | +226.8% | - The increase was primarily due to an increase of RMB 257 million in share of post-tax profits from joint ventures and an increase of RMB 84 million in share of post-tax profits from associates[61] Profit Attributable to Owners of the Company In the first half of 2020, profit attributable to owners of the company increased by 1.0% to RMB 5.127 billion, and core net profit attributable to owners of the company increased by 32.9% to RMB 5.306 billion H1 2020 Profit Attributable to Owners of the Company | Indicator | H1 2020 | H1 2019 | Year-on-Year Growth | | :--- | :----------- | :----------- | :------- | | Profit Attributable to Owners of the Company | RMB 5.127 billion | RMB 5.077 billion | +1.0% | | Core Net Profit Attributable to Owners of the Company | RMB 5.306 billion | RMB 3.992 billion | +32.9% | Liquidity and Capital Structure This chapter analyzes Agile Group's liquidity, financial, and capital resources, highlighting its cash position, borrowing structure, currency risk management, and financial guarantees and commitments Cash Position and Available Funds As of June 30, 2020, Agile Group's total cash and bank balances were RMB 46.407 billion, with cash and cash equivalents amounting to RMB 38.362 billion and unused borrowing facilities of RMB 7.633 billion Cash Position and Available Funds (as of June 30, 2020) | Indicator | June 30, 2020 (RMB billion) | December 31, 2019 (RMB billion) | Change | | :--- | :------------------------- | :------------------------- | :--- | | Total Cash and Bank Balances | 46.407 | 42.555 | +9.05% | | Cash and Cash Equivalents | 38.362 | 33.551 | +14.34% | | Restricted Cash | 8.045 | 9.004 | -10.65% | | Unused Borrowing Facilities | 7.633 | 6.404 | +19.20% | Borrowing Structure As of June 30, 2020, Agile Group's total borrowings amounted to RMB 98.939 billion, primarily comprising bank and other borrowings, senior notes, and domestic corporate bonds, with the gearing ratio optimizing to 73.3% Total Borrowings Composition (as of June 30, 2020) | Borrowing Type | Amount (RMB billion) | | :------- | :---------------- | | Bank and Other Borrowings | 73.854 | | Senior Notes | 11.985 | | Domestic Corporate Bonds, Commercial Property ABS, and ABS | 13.100 | | Total | 98.939 | Borrowing Repayment Schedule (as of June 30, 2020) | Repayment Schedule | Bank and Other Borrowings (RMB million) | Senior Notes (RMB million) | Domestic Corporate Bonds, etc. (RMB million) | Total (RMB million) | | :--------- | :-------------------------------- | :-------------------- | :---------------------------- | :------------------ | | Within 1 year | 27,453 | 2,825 | 10,025 | 40,303 | | Over 1 year and within 2 years | 25,486 | 7,755 | 3,075 | 36,316 | | Over 2 years and within 5 years | 16,712 | 1,405 | - | 18,117 | | Over 5 years | 4,203 | - | - | 4,203 | | Subtotal | 73,854 | 11,985 | 13,100 | 98,939 | Gearing Ratio (as of June 30, 2020) | Indicator | June 30, 2020 | December 31, 2019 | Change | | :--- | :------------ | :------------- | :--- | | Gearing Ratio | 73.3% | 82.8% | -9.5 percentage points | Currency Risk and Borrowing Costs Agile Group primarily conducts business in RMB, but manages foreign exchange risk for foreign currency-denominated debts through capped forward contracts, with borrowing costs increasing in H1 2020 due to a higher average borrowing balance - The Group primarily conducts business in RMB, with some bank deposits, bank loans, and senior notes denominated in HKD, USD, MOP, and MYR[67] - Since 2016, the Group has entered into capped forward contracts with banks to mitigate foreign exchange risk arising from foreign currency denominated debts due to exchange rate fluctuations[67] H1 2020 Borrowing Costs | Indicator | H1 2020 | H1 2019 | Year-on-Year Growth/Change | | :--- | :----------- | :----------- | :------------ | | Borrowing Costs | RMB 3.600 billion | RMB 3.319 billion | +8.5% | | Effective Borrowing Interest Rate | 6.78% | 7.06% | -0.28 percentage points | Financial Guarantees and Commitments As of June 30, 2020, Agile Group provided mortgage financing guarantees of RMB 51.938 billion for property buyers, and loan guarantees for associates, joint ventures, and third parties, with total capital commitments amounting to RMB 40.990 billion Financial Guarantees (as of June 30, 2020) | Guarantee Type | Amount (RMB billion) | | :------- | :---------------- | | Mortgage financing guarantees for property buyers | 51.938 | | Loan guarantees for associates | 1.045 | | Loan guarantees for joint ventures | 5.297 | | Loan guarantees for third parties | 1.496 | Capital Commitments (as of June 30, 2020) | Commitment Type | Amount (RMB billion) | | :------- | :---------------- | | Property development activities | 27.450 | | Land acquisition premiums | 11.763 | | Purchase of property, plant and equipment | 1.775 | | Total | 40.990 | Significant Investments and Post-Balance Sheet Events This chapter discloses Agile Group's significant investments, acquisitions, and disposals during the reporting period, including the proposed spin-off listing of Agile City Services, and important events after the reporting period Major Investments, Acquisitions and Disposals Agile Group announced a proposed spin-off and separate listing of its subsidiary, Agile City Services Group Limited, on the Main Board of the Hong Kong Stock Exchange, with the company expecting to retain no less than a 50% interest - The company announced on June 24, 2020, a proposed spin-off and separate listing of shares of its subsidiary, Agile Group Agile City Services Group Limited (Agile City Services), on the Main Board of the Stock Exchange[71] - Upon completion of the proposed spin-off and listing, the company expects to hold no less than a 50% interest in Agile City Services, which will remain a subsidiary of the company[71] Events After Reporting Period After the reporting period, Agile Group successfully issued USD 500 million of 5.75% senior notes on July 3, 2020, and RMB 1.5 billion of 6.2% corporate bonds on July 10, 2020 - The company successfully issued USD 500 million of 5.75% senior notes due in 2025 on July 3, 2020, receiving net proceeds of approximately USD 497 million[72] - On July 10, 2020, a Chinese subsidiary of the company issued a total of RMB 1.5 billion of 6.2% corporate bonds due on July 13, 2022[72] Employees and Remuneration As of June 30, 2020, Agile Group had 59,840 employees, with H1 employee benefit expenses of RMB 3.128 billion, and its remuneration plan is based on market levels, performance, and contributions Employee Composition (as of June 30, 2020) | Total Employees | Senior Management | Middle Management | | :------- | :----------- | :----------- | | 59,840 | 408 | 1,857 | Employee Benefit Expenses (H1 2020) | Indicator | H1 2020 | H1 2019 | Year-on-Year Growth | | :--- | :----------- | :----------- | :------- | | Employee Benefit Expenses | RMB 3.128 billion | RMB 2.159 billion | +44.88% | - Remuneration plans are determined with reference to market levels, employee performance, and contributions, and comprehensive welfare programs and career development opportunities are provided[73] Impact of COVID-19 The COVID-19 pandemic has impacted various industries, with short-term effects on real estate sales, but China's epidemic is gradually under control, and Agile Group will continue to assess its financial and operational impact - The novel coronavirus pandemic has caused varying degrees of impact on various industries, with real estate sales experiencing short-term psychological effects[74] - The epidemic in China has gradually been brought under control, and local governments have introduced easing policies to stabilize the real estate market[74] - The Group will closely monitor the development of the pandemic and continue to assess its financial and operational impact[74] Outlook Agile Group is confident in the future development of its various businesses and will consolidate its market position and achieve long-term growth through strategic development, quality enhancement, and improved management - Property development business will seize market opportunities, develop high-quality property projects, and consolidate its market position[75] - A-Living will continue to expand its business scope and increase GFA under management; the environmental protection business will ensure that M&A and ongoing projects contribute to revenue[75] - Green ecological landscape services and smart decoration home services will integrate resources and improve product quality; property management services will expand high-quality projects; commercial business will enhance project returns[75] - The Group will build Agile into a long-lasting century-old enterprise by enhancing internal management, optimizing operating models, improving talent training, elevating brand image, and improving product and service quality[75] Financial Statements Interim Condensed Consolidated Statement of Financial Position As of June 30, 2020, Agile Group's total assets were RMB 301.81 billion, an increase of 10.5% from 2019 year-end, with total liabilities of RMB 230.166 billion and total equity of RMB 71.643 billion Interim Condensed Consolidated Statement of Financial Position Key Data (as of June 30, 2020) | Indicator | June 30, 2020 (RMB thousand) | December 31, 2019 (RMB thousand) | | :--- | :------------------------- | :------------------------- | | Total Assets | 301,809,687 | 273,231,825 | | Non-current Assets | 81,747,389 | 82,467,376 | | Current Assets | 220,062,298 | 190,764,449 | | Total Equity | 71,643,285 | 65,336,476 | | Total Liabilities | 230,166,402 | 207,895,349 | Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2020, Agile Group's revenue was RMB 33.527 billion, gross profit was RMB 11.520 billion, and profit attributable to owners of the company was RMB 5.127 billion, with basic earnings per share of RMB 1.321 Interim Condensed Consolidated Statement of Profit or Loss Key Data (for the six months ended June 30, 2020) | Indicator | 2020 (RMB thousand) | 2019 (RMB thousand) | | :--- | :------------------ | :------------------ | | Revenue | 33,527,374 | 27,114,425 | | Gross Profit | 11,520,438 | 8,220,044 | | Operating Profit | 12,237,922 | 10,976,606 | | Profit for the Period | 6,339,199 | 5,893,691 | | Profit Attributable to Owners of the Company | 5,127,482 | 5,076,668 | | Basic Earnings Per Share (RMB) | 1.321 | 1.308 | Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2020, Agile Group's total comprehensive income for the period was RMB 6.319 billion, with RMB 5.117 billion attributable to owners of the company Interim Condensed Consolidated Statement of Comprehensive Income Key Data (for the six months ended June 30, 2020) | Indicator | 2020 (RMB thousand) | 2019 (RMB thousand) | | :--- | :------------------ | :------------------ | | Profit for the Period | 6,339,199 | 5,893,691 | | Other Comprehensive Income for the Period (after tax) | (19,963) | (23,768) | | Total Comprehensive Income for the Period | 6,319,236 | 5,869,923 | | Total Comprehensive Income Attributable to Owners of the Company | 5,116,925 | 5,052,237 | Interim Condensed Consolidated Statement of Changes in Equity As of June 30, 2020, Agile Group's total equity was RMB 71.643 billion, an increase from January 1, 2020, with equity attributable to owners of the company at RMB 47.999 billion Interim Condensed Consolidated Statement of Changes in Equity Key Data (as of June 30, 2020) | Indicator | June 30, 2020 (RMB thousand) | January 1, 2020 (RMB thousand) | | :--- | :------------------------- | :------------------------- | | Total Attributable to Owners of the Company | 47,998,768 | 44,473,623 | | Perpetual Capital Securities | 13,633,418 | 13,566,867 | | Non-controlling Interests | 10,011,099 | 7,295,986 | | Total Equity | 71,643,285 | 65,336,476 | Interim Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2020, Agile Group's net cash generated from operating activities was RMB 7.521 billion, with a net increase in cash and cash equivalents of RMB 4.834 billion Interim Condensed Consolidated Statement of Cash Flows Key Data (for the six months ended June 30, 2020) | Indicator | 2020 (RMB thousand) | 2019 (RMB thousand) | | :--- | :------------------ | :------------------ | | Net Cash Generated From / (Used In) Operating Activities | 7,521,046 | (11,840,480) | | Net Cash (Used In) / Generated From Investing Activities | (5,169,014) | 5,116,740 | | Net Cash Generated From Financing Activities | 2,481,761 | 4,142,343 | | Net Increase / (Decrease) in Cash and Cash Equivalents | 4,833,793 | (2,581,397) | | Cash and Cash Equivalents as of June 30 | 38,361,769 | 33,204,267 | Notes to the Financial Statements General Information and Basis of Preparation This chapter provides Agile Group Holdings Limited's registration information, principal business activities, and the basis of preparation for its interim financial information, which has been approved by the Board of Directors - Agile Group Holdings Limited was incorporated in the Cayman Islands and primarily engages in investment holding, with its subsidiaries primarily engaged in property development in China[86] - The condensed consolidated interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and was approved by the Board of Directors on August 21, 2020[88] - The outbreak of the novel coronavirus has not had a significant adverse impact on the Group's financial position and operating results[87] Accounting Policies and Financial Instruments This chapter describes Agile Group's adopted accounting policies, including the impact of new and revised standards, and fair value measurement methods for financial instruments, which use a three-level hierarchy - The Group has initially adopted several new and revised standards for the reporting period beginning January 1, 2020, but these have had no significant impact on the Group's results or financial position[89] - Fair value measurement of financial instruments uses a three-level hierarchy: Level 1 for active market quotes, Level 2 for observable market data, and Level 3 for significant unobservable inputs[96] Level 3 Financial Assets Balance at Period End (as of June 30, 2020) | Indicator | 2020 (RMB thousand) | 2019 (RMB thousand) | | :--- | :------------------ | :------------------ | | Balance at Period End | 2,634,984 | 769,223 | - Valuation of Level 3 instruments primarily includes unlisted equity securities, wealth management products, and put options, using valuation techniques such as discounted cash flows, and assessing discount rates, earnings growth factors, and expected cash inflows[100] Segment Information Agile Group is divided into five business segments: property development, property management, hotel operations, property investment, and environmental protection, with detailed disclosures of each segment's financial performance and assets - The Group is divided into five business segments: property development, property management, hotel operations, property investment, and environmental protection[102] H1 2020 Operating Profit by Segment | Segment | Operating Profit (RMB thousand) | | :--- | :-------------------- | | Property Development | 11,326,517 | | Property Management | 718,735 | | Hotel Operations | (68,861) | | Property Investment | 69,693 | | Environmental Protection | 191,838 | Segment Assets as of June 30, 2020 | Segment | Segment Assets (RMB thousand) | | :--- | :-------------------- | | Property Development | 245,617,518 | | Property Management | 12,711,067 | | Hotel Operations | 11,991,854 | | Property Investment | 8,758,449 | | Environmental Protection | 17,637,563 | - Inter-segment transfers or transactions are conducted on terms and conditions agreed upon by the parties, and the pricing policy for inter-segment transactions is determined with reference to market prices[110] Notes to Statement of Financial Position Items This chapter provides detailed notes for each major item in Agile Group's statement of financial position, including property, plant and equipment, investment properties, right-of-use assets, goodwill, intangible assets, and various receivables and payables Property, Plant and Equipment, Investment Properties and Right-of-Use Assets As of June 30, 2020, the net book value of property, plant and equipment was RMB 12.826 billion, investment properties was RMB 8.758 billion, and right-of-use assets was RMB 3.035 billion, with some assets pledged as collateral Net Book Value of Property, Plant and Equipment, Investment Properties and Right-of-Use Assets (as of June 30, 2020) | Asset Type | Net Book Value (RMB thousand) | | :------- | :-------------------- | | Property, Plant and Equipment | 12,826,481 | | Investment Properties | 8,758,449 | | Right-of-Use Assets | 3,035,280 | - Self-occupied properties with a value of RMB 3.771 billion, land use rights of RMB 1.460 billion, and investment properties of RMB 5.311 billion have been pledged as collateral for the Group's borrowings[114][116][118] - The fair value of investment properties is revalued by independent qualified valuers, using the income capitalization approach and direct comparison approach[116][117] Goodwill and Other Intangible Assets As of June 30, 2020, the net book value of goodwill was RMB 4.768 billion, and other intangible assets was RMB 2.249 billion, with goodwill primarily increasing due to the acquisition of subsidiaries Net Book Value of Goodwill and Other Intangible Assets (as of June 30, 2020) | Asset Type | Net Book Value (RMB thousand) | | :------- | :-------------------- | | Goodwill | 4,768,190 | | Other Intangible Assets | 2,248,889 | - Goodwill primarily increased by RMB 871 million due to the acquisition of subsidiaries[119] Investments Accounted for Using the Equity Method As of June 30, 2020, the balance of investments accounted for using the equity method was RMB 15.643 billion, with changes during the period resulting from disposals and acquisitions Changes in Investments Accounted for Using the Equity Method (for the six months ended June 30, 2020) | Change Type | Amount (RMB thousand) | | :------- | :---------------- | | Opening Balance | 14,711,189 | | Additions | 1,339,260 | | Additions through Business Combinations | 498,373 | | Transferred from Subsidiaries | 1,564,268 | | Gain on Remeasurement of Investment in Joint Ventures | 825,314 | | Transferred to Subsidiaries | (2,887,440) | | Share of Post-tax Profits | 491,115 | | Disposals | (894,825) | | Dividends Received | (3,905) | | Closing Balance | 15,643,349 | - The Group disposed of certain interests in several subsidiaries to independent third parties, recording a gain on disposal of RMB 1.812 billion[122] - The Group acquired additional equity in certain joint ventures from other independent shareholders, recognizing a gain on remeasurement of investment in joint ventures of RMB 825 million[122] Prepaid Land Lease Payments Prepaid land lease payments are upfront payments for acquiring property use rights for property development, which will be transferred to properties under development upon obtaining contractual land use rights - These payments are upfront payments for acquiring property use rights for property development, which will be transferred to properties under development when the Group obtains the contractual land use rights for the relevant land[123] Properties Under Development As of June 30, 2020, total properties under development amounted to RMB 118.706 billion, with most located in China, and approximately RMB 36.492 billion pledged as collateral for borrowings Properties Under Development Composition (as of June 30, 2020) | Indicator | Amount (RMB thousand) | | :--- | :---------------- | | Total Properties Under Development | 118,705,911 | | Land Use Rights | 83,590,223 | | Construction Costs and Capitalized Expenses | 28,070,298 | | Capitalized Interest | 7,045,390 | - A provision of RMB 1.453 billion has been made for write-downs of properties under development[125] - Approximately RMB 36.492 billion of properties under development have been pledged as collateral for the Group's borrowings[125] Completed Properties Held for Sale All completed properties held for sale are located in China, with a provision of RMB 622 million made for write-downs, and approximately RMB 122 million pledged as collateral for bank borrowings as of June 30, 2020 - All completed properties held for sale are located in China, with land use right terms ranging from 40 to 70 years[126] - A provision of RMB 622 million has been made for write-downs of completed properties held for sale[126] - Approximately RMB 122 million of completed properties held for sale have been pledged as collateral for the Group's bank borrowings[126] Trade and Other Receivables As of June 30, 2020, total trade receivables amounted to RMB 8.925 billion, and total other receivables amounted to RMB 43.722 billion, with an impairment provision of RMB 143 million for trade receivables Trade and Other Receivables (as of June 30, 2020) | Indicator | June 30, 2020 (RMB thousand) | December 31, 2019 (RMB thousand) | | :--- | :------------------------- | :------------------------- | | Total Trade Receivables | 8,925,050 | 7,802,037 | | Less: Impairment Provision for Trade Receivables | (143,077) | (73,440) | | Total Other Receivables | 43,722,474 | 33,032,176 | | Less: Impairment Provision for Other Receivables | (288,898) | (218,579) | Ageing Analysis of Trade Receivables (as of June 30, 2020) | Ageing | Amount (RMB thousand) | | :--- | :---------------- | | Within 90 days | 5,656,718 | | Over 90 days and within 365 days | 2,530,626 | | Over 365 days | 737,706 | - Approximately RMB 469 million of trade receivables have been pledged as collateral for the Group's bank borrowings[130] Financial Assets at Fair Value Through Profit or Loss As of June 30, 2020, total financial assets at fair value through profit or loss amounted to RMB 3.180 billion, primarily including wealth management products, listed equity and debt instruments, and derivative financial instruments Financial Assets at Fair Value Through Profit or Loss (as of June 30, 2020) | Asset Type | Amount (RMB thousand) | | :--- | :---------------- | | Wealth Management Products | 2,205,934 | | Hong Kong Listed Equity and Debt Instruments | 231,086 | | Unlisted Equity Securities | 326,084 | | Derivative Financial Instruments | 341,333 | | Others | 75,085 | | Total | 3,179,522 | - Fair value gains of RMB 53,863,000 were recognized in profit or loss[131] Restricted Cash As of June 30, 2020, restricted cash was primarily denominated in RMB, including deposits for mortgage loans and construction of presold properties, accident compensation deposits, and collateral for borrowings - Restricted cash is primarily denominated in RMB, including deposits for mortgage loans and construction of presold properties, accident compensation deposits, and collateral for borrowings[133] Cash and Cash Equivalents As of June 30, 2020, total cash and cash equivalents amounted to RMB 38.362 billion, primarily comprising bank balances and cash on hand, and short-term bank deposits, with most denominated in RMB Cash and Cash Equivalents (as of June 30, 2020) | Component | Amount (RMB thousand) | | :--- | :---------------- | | Bank Balances and Cash on Hand | 34,421,915 | | Short-term Bank Deposits | 3,939,854 | | Total | 38,361,769 | - Most cash and cash equivalents are denominated in RMB and are subject to foreign exchange control rules and regulations promulgated by the Chinese government[134] Share Capital and Share Premium As of June 30, 2020, the company's authorized share capital was 10 billion shares, and issued and fully paid share capital was 3.917 billion shares, with a total share capital and share premium of RMB 3.422 billion Share Capital and Share Premium (as of June 30, 2020) | Indicator | Number of Shares | Par Value (HKD thousand) | Par Value Equivalent (RMB thousand) | Share Premium (RMB thousand) | Total (RMB thousand) | | :--- | :------- | :-------------- | :-------------------- | :-------------------- | :---------------- | | Authorized | 10,000,000,000 | 1,000,000 | - | - | - | | Issued and Fully Paid | 3,917,047,500 | 391,705 | 400,253 | 3,021,630 | 3,421,883 | Shares Held Under Share Award Scheme As of June 30, 2020, the value of shares held by the employee share trustee under the share award scheme was RMB 157 million, presented within equity in the interim condensed consolidated statement of financial position - The company adopted a share award scheme on December 10, 2013, and established a trust to administer the share award scheme and hold awarded shares[136] - As of June 30, 2020, the value of shares held by the employee share trustee under the share award scheme was RMB 157 million[136] Other Reserves As of June 30, 2020, total other reserves amounted to RMB 2.918 billion, including merger reserve, statutory reserve and enterprise development fund, exchange reserve, and others, with changes during the period from retained earnings and currency translation differences Other Reserves Composition (as of June 30, 2020) | Reserve Type | Amount (RMB thousand) | | :------- | :---------------- | | Merger Reserve | 442,395 | | Statutory Reserve and Enterprise Development Fund | 4,077,067 | | Exchange Reserve | 554 | | Others | (1,602,384) | | Total | 2,917,632 | - The statutory reserve fund requires a portion of post-tax profits to be transferred until the cumulative total reaches 50% of the registered capital[141] Perpetual Capital Securities As of June 30, 2020, the balance of perpetual capital securities was RMB 13.633 billion, with changes during the period resulting from profit attributable to holders and distributions Changes in Perpetual Capital Securities (for the six months ended June 30, 2020) | Change Type | Amount (RMB thousand) | | :------- | :---------------- | | Opening Balance | 13,566,867 | | Profit Attributable to Holders of Perpetual Capital Securities | 549,386 | | Distributions to Holders of Perpetual Capital Securities | (482,835) | | Closing Balance | 13,633,418 | Borrowings As of June 30, 2020, Agile Group's total borrowings amounted to RMB 98.939 billion, including various types of loans and securities, with some secured and some jointly guaranteed by subsidiaries Total Borrowings (as of June 30, 2020) | Indicator | Amount (RMB thousand) | | :--- | :---------------- | | Total Borrowings | 98,938,771 | - Senior notes are jointly guaranteed by certain subsidiaries of the Group and pledged with shares of these subsidiaries as collateral[144] - The Group's borrowings are secured by certain cash, land use rights, self-occupied properties, trade receivables, completed properties held for sale, properties under development, investment properties, shares of certain subsidiaries, and equity interests in a joint venture[153] - Unsecured borrowings of RMB 20.253 billion are jointly guaranteed by certain subsidiaries of the Group[153] Trade and Other Payables As of June 30, 2020, trade payables amounted to RMB 23.170 billion, and other payables amounted to RMB 71.573 billion, with the current portion of trade and other payables at RMB 68.685 billion Trade and Other Payables (as of June 30, 2020) | Indicator | June 30, 2020 (RMB thousand) | December 31, 2019 (RMB thousand) | | :--- | :------------------------- | :------------------------- | | Trade Payables | 23,169,905 | 21,276,425 | | Other Payables | 71,572,946 | 56,119,696 | | Trade and Other Payables - Current Portion | 68,685,404 | 53,917,720 | Financial Liabilities at Fair Value Through Profit or Loss As of June 30, 2020, the non-current portion of financial liabilities at fair value through profit or loss was RMB 86 million, and the current portion was RMB 14 million, primarily including put options and derivative financial instruments Financial Liabilities at Fair Value Through Profit or Loss (as of June 30, 2020) | Liability Type | Non-current Portion (RMB thousand) | Current Portion (RMB thousand) | | :------- | :---------------------- | :-------------------- | | Put Options | 62,861 | 13,981 | | Derivative Financial Instruments | 23,487 | - | | Total | 86,348 | 13,981 | - For the six months ended June 30, 2020, fair value gains on derivative financial instruments of RMB 397 million were recognized in "Net Finance Costs" in the interim condensed consolidated statement of profit or loss[158] Contract Liabilities As of June 30, 2020, total contract liabilities amounted to RMB 38.467 billion, primarily from property sales, with RMB 20.280 billion of revenue recognized from amounts included in the opening balance Contract Liabilities (as of June 30, 2020) | Liability Type | Amount (RMB thousand) | | :--- | :---------------- | | Related Parties | 46,614 | | Third Parties | 38,420,171 | | Total | 38,466,785 | Revenue Recognized from Contract Liabilities (as of January 1, 2020) | Revenue Type | Amount (RMB thousand) | | :--- | :---------------- | | Property Sales | 19,886,345 | | Property Management and Value-added Services | 394,153 | | Total | 20,280,498 | Notes to Statement of Profit or Loss Items This chapter provides detailed notes for each major item in Agile Group's statement of profit or loss, including net other income, other income, other expenses, expenses by nature, net finance costs, income tax expense, earnings per share, and dividends Net Other Income In the first half of 2020, net other income was RMB 2.832 billion, a 40.0% decrease from the same period last year, primarily due to reduced gains from disposal of subsidiaries and financial assets Net Other Income Composition (for the six months ended June 30, 2020) | Item | 2020 (RMB thousand) | 2019 (RMB thousand) | | :--- | :------------------ | :------------------ | | Gains from Disposal of Subsidiaries | 1,812,304 | 2,988,981 | | Gains on Remeasurement of Joint Ventures Transferred to Subsidiaries | 825,314 | 579,449 | | Fair Value Gains on Financial Assets at FVTPL | 53,863 | 882,667 | | Gains / (Losses) on Disposal of Property, Plant and Equipment and Investment Properties | 67,306 | (11,597) | | Gains from Disposal of Joint Ventures | 40,7